As a business owner, you are responsible for the safety and security of your company. This includes protecting your business from fraud. One type of fraud that you should be aware of is CEO impersonation fraud.
CEO impersonation fraud is when a scammer impersonates a company’s CEO in order to gain access to sensitive information or money. They may do this by sending emails or making phone calls to employees. The scammer may also create fake websites or social media profiles to make their impersonation more believable.
This type of fraud can be devastating to a company. It can lead to the loss of money, sensitive information, and even the reputation of the company. That’s why it’s important to be aware of this type of fraud and take steps to protect your business. phishprotection.com is a fantastic site to learn about CEO fraud.
What is CEO Fraud?
Cybercriminals may typically use the email account of a trusted senior executive within a company or a nickname that appears very similar to infiltrate an employee at the firm, often with the aim of stealing money or gaining access to highly confidential information.
I understand why the prospective target did so as described to the assailant. Many intelligent, well-meaning workers are hesitant to dispute a call from their boss and will just comply with their orders. The attacker claims to be a trusted source for the victim to follow their directives to the letter. Many smart and well-meaning employees are hesitant to query a request from the CEO, and eventually choose to adhere to it.
How CEO fraud attacks work
Phishing fraud attacks leverage the social elements of humans. When a CEO needs an urgent favor, employees often don't believe it's fraud.
There are two main ways cybercriminals can get access to a CEO’s email account:
- Hacking: Compromising the CEO’s business email account and using it to send emails to employees.
- Targeted phishing email, also called spear phishing (spear phishing): Sending an email from a fake, almost identical email address as the CEO and impersonating them.
The Seven Most Common CEO Fraud Attack
Awareness is key when it comes to prevention. That’s why we’ve made an overview of the most common CEO fraud attack
- Wire transfer phishing: An employee receives a message from a hacked or spoofed email account of a CEO to pay an invoice.
- Gift certificate phishing: The attacker asks the targets to buy them gift certificates (for example, as a surprise to a fellow employee).
- Malicious payload: The email contains a malware attachment (phishing).
- Money transfer to a foreign supplier: This scam is targeting long-standing wire-transfer relationships with a supplier but asks for the funds to be sent to a different bank account.
- Fraudulent invoices: Company suppliers receive fraudulent invoices from an impersonated executive which, you guessed it, they request to be paid to an alternative bank account.
- Confidential information: Cyberattackers may present themselves as lawyers or executives working in confidential or time-delicate business settings. They may request classified information.
- Data theft: A high-level executive asks the company's HR department, accounting department, or auditing unit to provide progress forms, wage or tax statements, or a personnel list of all personally identifiable information.
On a final note, CEO fraud is on the rise, and it's important for businesses to be aware of the dangers. By taking some simple steps to protect your business, you can help reduce the chances of becoming a victim of this type of fraud. It's important to be aware of the threat of CEO impersonation fraud and take steps to protect your business. This type of fraud is on the rise, and it can be devastating to your company if you fall victim to it. There are a few key things you can do to protect yourself, including being aware of the red flags and verifying requests for information or money.